xStocks are not available in the U.S. or to U.S. persons. Geo restrictions apply. Read Kraken's xStocks Risk Disclosure and the Base Prospectus and related Final Terms for more information.
Corporate Actions
Discover how stock splits, mergers, and other corporate actions affect xStocks, and when updates are applied.
Key Takeaways
- Corporate actions are events that affect publicly traded companies and their shares.
- Common corporate actions include stock splits, reverse stock splits, mergers, acquisitions, and ticker changes.
- When an underlying stock or ETF is affected, the corresponding xStock is updated accordingly.
- Processing times may vary depending on the type of corporate action.
Public companies change over time. They may split their stock, merge with another business, change their name, or take other actions that affect their shares. These events are known as corporate actions.
When a corporate action affects an underlying stock or ETF, the corresponding xStock is updated to reflect that event.
Common corporate actions
Corporate actions can take many forms. Some of the most common include:
Stock splits
A stock split increases the number of shares in circulation while reducing the price per share. The overall value of an investor's position remains the same.
Reverse stock splits
A reverse stock split reduces the number of shares while increasing the price per share. As with a stock split, the overall value of the position does not change as a result of the split alone.
Mergers and acquisitions
If a company merges with or is acquired by another business, shareholders may receive shares in the new company, cash, or a combination of both, depending on the terms of the transaction.
Ticker or company name changes
Companies occasionally change their name or trading symbol. These changes do not affect ownership of the underlying security.
Other corporate actions, such as spin-offs or special dividends, may also occur from time to time.
How are corporate actions handled?
When a corporate action affects an underlying stock or ETF, xStocks processes the event in accordance with the product terms and the outcome of the underlying corporate action.
The way an event is handled depends on the type of corporate action. Some changes, such as stock splits, may be reflected automatically. Others may require additional operational processing before they are completed.
When are updates applied?
Corporate actions are processed after they become effective for the underlying security.
The timing may vary depending on the event and the operational steps required to complete it. If a corporate action affects your xStocks, your platform will provide additional information where applicable.
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Important Information
xStocks are not available in the U.S. or to U.S. persons. Geo restrictions apply. Read Kraken's xStocks Risk Disclosure and the Base Prospectus and related Final Terms for more information. This content is partner enablement material, not investment advice. IPO-related content carries additional communication rules - see the brand kit before repurposing. In the EEA and most countries outside the US, IPO access on Kraken is via xStocks - tokenized securities issued by Backed Assets (JE) Limited pursuant to an EU-registered prospectus, providing price exposure only. xStocks are not equity and confer no voting or shareholder rights. Allocation is subject to underwriter decisions and is not guaranteed; any funds not allocated are returned. The value of investments may go down as well as up. Not available in the U.S. or to U.S. persons, or in the United Kingdom, Canada or Australia. Geo restrictions apply. xStocks are made available in the EEA by Payward Europe Digital Solutions (CY) Limited, regulated by CySEC (licence no. 342/17); and elsewhere by Payward Digital Solutions Ltd., regulated by the Bermuda Monetary Authority.